The study of t
The
study of the effects of market’s efficiency level with information content of
accounting profit on the evolution of accepted firms in Tehran stock exchange
Alireza Askarpour1,
Zahra Rahmati 2, Ali Bagherifar 3
1.Department of Managment, Shoushtar
Branch,Islamic Azad University, Shoushtar,Iran
2. Department of Accounting, Abdanan Branch,
Islamic Azad University, Abdanan, Iran
3.Department of Managment, Ahvaz
Branch,Islamic Azad UniversityAhvaz, Iran
Abstract: Up
to now, in mast of conducted researches the relationship between the accounting
variables and the frims’ stock price, the assumption of market’s efficiency has
been accepted and the researches have been done in Iran’s economic environment
according to this hypothesis. The main question of this research is that
whether the inefficiency of the existing market causes to creation difference
within the results of former researches. Due to answer the mentioned question,
four assumptions have been codified in this investigation. The method for doing
this research is semi- empirical and the statistical population in this
research were Tehran negotiable papers stock market. In order to compute the
market inefficiency level of each of the sample firms, there has been used of
Hou, et al. research method and then via collins, et al. the initial and
developed models were estimated in order to test the research’s hypotheses, In
order to estimate the mentioned models, the sample companies’ data form years
2000 to 2010 were used. The results of hypothesis testing showed that the
market inefficiency has a negative effect on the information content of future
earnings and future operating cash flow, and it doesn’t have any effect on the
information content of future accruals and current income and stake holders of
enterprises should take note of this.
[Alireza
Askarpour, Zahra Rahmati, Ali Bagherifar. The study of the effects of
market’s efficiency level with information content of accounting profit on the
evolution of accepted firms in Tehran stock exchange. J Am Sci 2012;8(10):432-441]. (ISSN:
1545-1003). http://www.jofamericanscience.org. 63
Key words: stock exchange, information content of earnings,
accruals, operating cash flow. Full Text 63
